The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-06-07
NO RATES BELOW COST.
GEN. ALEXANDER'S VIEWS on
LONG AND SHORT HAULS.

LONG AND SHORT HAUBS.
He Is Doubtful Whether the Interstate
Commerce Commission Will Suspend
the Fourth Section After July 5-His
Reply to Senator Reagan-The Issue
Nearing a Close.
The rumors that the Interstate Commerce
Commission will soon rescind the order sus-
pending the long and short haul clause,
and the fact that within thirty days the
order will expire by limitation, is causing
good deal of gossip and speculation in rail
road circles as to what action the commits
sion viii take. Some leading and well
posted railroad men do not believe that the
law will be enforced in the South, though it
is hardly possible that the Objectionable
clause will be suspended for any one section
Of the country.
GEN. ALEXANDER'S VIEWS.
Cen z. P. Alexander, who has just re-
turned from Boston, where he was before
the Pacific Railroad investigating commit
tee last week, was asked yesterday whether
he believed the fourth section of the bill
will be enforced after July 5. He replied
that he is very doubtful whether the COM
mission will suspend the clause after that
date.
Gen. Alexander has made final appeal
to the commission, in which he re-
plies to Senator Reagan's letter to
Judge Cooley, defining and limiting the
issue between those who ask for suspen-
sion of the restrictions of the law and those
who wish them enforced much more closely
than has heretofore been done in the arguv
Iaents and petitions which have been laid
: before the commission.
Il HIS REPLY TO SENATOR REAGAN.
Senator Reagan stated as the reason why
Congress should enact that railroads should
be forbidden TO charge or receive a less sum
upon freights carried for longer than for
a shorter distance, that it has been, and is,
d general custom of railroads to carry dis
tant and competitive freights at figures
involving a loss of money, and that they
make up for such losses by excessive charges
upon short HAUL and non-competitive freight.
/ Gen. Alexander admits that if this state
lment of facts is correct the railroads have
loeen guilty of outrages upon the public and
should be restrained They have no right
he .sas-1 to take unearned money from A
and present it to b. And he joins heartily
with MIR. Reagan in denouncing any such
PRACTICES. He even goes further, and says
that al railroad should be restrained from
prescribing money to B, even though it has
honestly earned it from A and has given
tAAh AbfS LuA FoiNiiO Al oCi NiOCo
NOR WORK AT LOSS.
In other words it should not be allowed
10 serve b at a loss. His answer to Senator
Reaf,an in few words is this "a railroad
should not be allowed to carry long haul
freight, or any freight, at less than actual
cosEIn Freight tariffs adjusted under such
a restriction evidently cannot Cypress any
one, land do not belong to the class at which
the law is aimed.
(4eku AlaxaudaY want ON 70 cav that II iS
fact of such public notoriety that a court
may take cognizance of it, that Senator
REAGAN was the principal promoter of the
restrictions placed upon the long haul rates.
MIR. Reagan officially informed the commits
sion of the reasons which influenced Con-
gress III enacting the law.
THE COMMISSIONS POWER.
But, in placing the restrictions which it
did, Congress created the commission and
gave it discretionary power to suspend them,
thus recognizing the fact that cases might
arise where these restrictions would involve
harmful results and should be abated. The
responsibility is upon the commission, he
SAYS, to decide whether such cases have now
arisen, and in its cautious discharge it has
asked Senator Reagan to indicate what cir
cunstances Congress had in view as suffi-
Gent to justify a less charge upon the longer
haul Mr. Reagan's reply evades direct an
sWer, but is it not complete answer in its
recital of the evils which the law was de-
signed to abates
DRAW THE LINE SOMEWHERE.
And some answer to this inquiry, Gen.
Alexander says the commission is bound to
find. Congress has enacted that a certain
line must be drawn, not rigidly, but with
discretion The railroads, he says, want the
line drawn somewhere. 1t would meet
Senator Reagan's argument, to forbid rail-
roads receiving less upon longer hauls
wherever these two things would occur
together.
LIST. Where the railroad would lose money
by the long haul service.
ID Where some shorter haul was charged
exorbitant rates.
Clearing the discussion, then, of all side
issues, and reducing it to its simplest form,
Gen Alexanders rule for adjusting all long
haul tariffs SO as to comply with the intent
of Congress is:
FREE COMPETITION ABOVE COST.
ssNo rates below cost. Free competition
above cost" That principle is now APP
piled in the classification of freights all
over the world 1t would be simply apply
ing the same principle to freight going diff
ferent distances that is now applied to
freight possessing different qualities.
How about the coast cities and their
clanor for an enforcement of the law.n the
General was asked.
"There are of course some people i'll the
coast towns who want the clause enforced"
he replied, 'but they are comparatively
few. The great majority. of people want
the clause suspended, but whether the com
mission will do this cannot say"